Village of Rarden Placed in Fiscal Caution

Thursday, October 17, 2013

Columbus – Poor records and failure to prepare required financial documents prompted Auditor of State Dave Yost today to place the Village of Rarden (Scioto County) in a state of fiscal caution.

“The Village of Rarden is failing to perform basic accounting and operating procedures,” Auditor Yost said.  “Now is the time for the village to heed this early warning and get its finances back on track.”

A review of the village’s financial records on October 2, 2013 found that account journals and ledgers with the bank have not been reconciled since December 31, 2010 (33 months).  Since the village’s records are so poor and in need of reconstruction, fund balances cannot be determined for 2011 and 2012.  The village also failed to file an annual tax budget, appropriations, certificate of year-end balances and a resolution accepting the amounts and rates as determined by the Scioto County Budget Commission for 2012 and 2013.  In addition, the village failed to follow the necessary procedures to renew two of its tax levies (a 6.0-mill current expense levy and a 5.5-mill fire levy) and did not file annual financial reports with the Auditor of State’s office for 2011 and 2012.

The Auditor of State’s guidelines for a declaration of fiscal caution include (1) unauditable financial records; (2) significant deficiencies, material weaknesses, direct and material noncompliance that have a material effect on the financial condition; (3) deficit fund balances; (4) a carryover fund balance of less than one month’s average expenditures for two consecutive years, and (5) a failure to reconcile accounting journals and ledgers with the treasury.

Under the declaration and in accordance with Revised Code 118.025(A), the village has 60 days to submit to the Auditor of State a plan to correct the conditions that led to the declaration of fiscal caution.

A full copy of this fiscal caution declaration may be accessed online.



The Auditor of State’s office, one of five independently elected statewide offices in Ohio, is responsible for auditing more than 5,800 state and local government agencies.  Under the direction of Auditor Dave Yost, the office also provides financial services to local governments, investigates and prevents fraud in public agencies and promotes transparency in government.

Carrie Bartunek
Press Secretary